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DerivativesP
Perpetual Futures
Futures contracts with no expiration date, popular in cryptocurrency trading. Positions can be held indefinitely. Price is anchored to spot via a funding rate mechanism.
Example
“A crypto trader opens a 10x leveraged long on the BTC-PERP perpetual futures contract and pays a 0.01% funding rate every 8 hours to short sellers while the contract trades above spot.”